TNAG-1603-FCO40-2210-Future-of-Hong-Kong-annual-reports-to-Parliament-on-Hong-Kon-1987 — Page 62

RESTRICTED

education

activities is

under

overnment in coordination

Company

preparation

by the

Hong

Kong

Investment

with the Hong Kong Nuclear

VIII. PERFORMANCE OF THE ECONOMY

(a)

General Situation

42.

.ong economy, led by a strong

March

Domestic exports

1986 saw a marked upturn in the Hong

recovery in domestic exports since

grew by 15% in real terms, in the first ten months of 1986, over the same period last year,

in contrast with a decline of 5% in 1985 as a

whole. This recovery was attributable partly to improved demand for

Hong Kong's products in many of its major Overseas markets, and

partly to improved external competitiveness. caused by the depreciation of the Hong Kong dollar against most major currencies,

in line with the depreciation of the US dollar under the linked

exchange rate system For the first ten months of 1986

grew by 10% in real terms.

43.

re-exports

In

The strong recovery in domestic exports has helped to

maintain employment at a high level and to boost labour incomes

the period September

November 1986, the seasonally-adjusted

unemployment rate was 2.4% and the underemployment rate was 1.2%. Employment continued to grow particularly in the financial and other

business services sectors and in the distributive trades. Earnings in most sectors increased significantly both in money terms and

real terms

in

44.

economic conditions, private

reflected by the

as

In line with the improved

consumption demand has also firmed up,

relatively high growth rates of retained imports of consumer goods

11% and 10% respectively in real terms in the

and of foodstuffs, at

first ten months of 1986.

RESTRICTED